The total cost of replacing the old machine is the cost of the new machine minus the proceeds from the sale of the old machine, which is $792,600 - $168,800 = $623,800. The net differential (increase)/decrease in cost over six years is the difference between the cost of replacing the old machine and the total differential decrease in cost, which is $623,800 - $134,700 = $489,100. Here's the filled differential analysis report: Replace or Keep Decision Differential Analysis Report Cost of replacing old machine: Annual differential decrease in cost: $22,450 x number of years: 6 Total differential decrease in cost: $134,700 Proceeds from sale of present machine: $168,800 Total: $303,500 Cost of new machine: $623,800 Net differential (increase)/decrease in cost, six year total: $489,100 This means that if Skiles Corporation decides to replace the old machine with the new one, they could potentially incur an additional cost of $489,100 over six years. However, this does not take into account other factors such as the impact on productivity and the quality of work produced by the new machine versus the old one. These factors should also be considered in the final decision